Optimist Fund Cites 9% Revenue Growth and 70% EBITDA Surge at Wayfair
Optimist Fund’s Q4 2025 letter noted that Wayfair’s Q3 revenue rose 9% year over year, accelerating from 6% in Q2, while adjusted EBITDA surged over 70%. The fund also highlighted 7.8% Q4 sales growth excluding Germany and a rise to 59 hedge fund holders from 50 last quarter.
1. Fund Emphasizes Wayfair’s Rebound
Optimist Fund’s Q4 2025 letter highlighted Wayfair as a top five holding, emphasizing the company’s recovery in the home furnishings market and confidence in its long-term growth trajectory.
2. Accelerating Revenue and EBITDA Growth
Wayfair posted 9% year-over-year revenue growth in Q3 (up from 6% in Q2) and more than 70% adjusted EBITDA increase, while Q4 sales grew 7.8% excluding Germany.
3. Rising Hedge Fund Ownership and Valuation Outlook
Wayfair’s shares are held by 59 hedge funds, up from 50 last quarter, and the fund believes current valuations significantly underestimate the company’s earnings and cash flows over the next five years.